Building materials group Readymix has said it expects pretax profit for last year to be 28 per cent ahead of that achieved in 2005 after the company benefited from favourable economic conditions and the impact of a recent restructuring plan.

In a trading update ahead of the group's annual results on March 2nd, Readymix chairman Adrian Auer said the group had achieved a "very significant" improvement in performance in 2006.

"The board is pleased with the progress that has been made in the turnaround of the company, and with the introduction of world-class standards of operation we are now well-positioned to deliver further value enhancement to all our stakeholders," he said.

At the time of the company's interim results in August, chief executive Roger Gonzalez said he was forecasting growth in operating profit before exceptional items of between 20 and 25 per cent for the full year - in line with the growth seen in the first six months of the year.

Pretax profit was up 17 per cent in the first half.

Readymix, which is controlled by Mexican group Cemex, embarked on a restructuring programme in 2005, which included the closure of its road-resurfacing division and the sale of several properties. These changes boosted profits on a one-time basis.

Revenue slipped 4.6 per cent to €119.5 million in the first half as a result of the restructuring and Mr Gonzalez said in August that he expected a similar decline in revenue for the full year. Yesterday the company declined to comment on the revenue outlook.

Analysts generally welcomed yesterday's statement, saying it was in line with forecasts. Goodbody analyst Peter Gunn said it emphasised the fact that the new management was moving the company in the right direction.